Why Home Depot Shares Moved Higher Today

There are two good reasons Home Depot (NYSE: HD) stock jumped today. Shares of the home improvement retailer rose as much as nearly 6% early Tuesday. The stock didn't hold that sharp gain but it was still higher by 1.2% as of 3:21 p.m. EST.

The first catalyst was from investment banking firm Cowen, while the second came from the latest inflation data released by the Labor Department. Cowen analyst Max Rakhlenko today named Home Depot one of his firm's top investment ideas for 2023. That call was made for company-specific reasons, but investors also felt new economic data released today should support Home Depot shares moving into next year.

Rakhlenko reiterated his equivalent-to-a-buy rating for Home Depot shares and boosted his firm's price target from $350 to $379 per share in a report shared by Barron's. The analyst cited advancements the company has made in attracting the professional consumer segment. Home Depot's Pro business has been a focus for new investments and helps balance the do-it-yourself (DIY) side of the business. That helps provide the retailer strength throughout the housing sector cycles.

Source Fool.com